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Google - AI Stock Analysis

Analysis generated February 5, 2025

Google LLC, now a subsidiary of Alphabet Inc., is one of the world's leading technology companies. Founded in 1998, the company has a diversified portfolio that includes search services, online advertising technologies, software and hardware, as well as other ventures in cloud computing, AI, and more. Google dominates the search engine market and is a key player in the internet industry through its various platforms like YouTube, Android, and Google Cloud.

Fundamental Analysis

Revenue: For the last quarter, Google reported revenue of $88.3 billion. This marks an increase of 4.27% compared to the previous quarter, which is a positive sign of growth. Year-over-year, there is an impressive increase of 15.78%, suggesting robust and consistent growth. Revenue growth is crucial as it indicates expanding businesses and higher market penetration.

Net Income: The net income for the last quarter was $26.3 billion, up by 11.36% from the previous quarter and 33.58% from the same quarter last year. This signifies not only growth in revenue but also improved operational efficiency and profitability.

EBITDA: Google’s EBITDA for the last quarter was $35.7 billion, increasing by 14.11% compared to the previous quarter and 30.38% year-over-year. EBITDA is a key indicator of a company's operating performance and higher numbers suggest better business health.

P/E Ratio: The current P/E ratio stands at 26.65. While this is generally seen as high, potentially indicating overvaluation, it also reflects investor optimism about future growth prospects.

Insider Activity: Recent insider selling could be seen as a bearish signal, suggesting that those closest to the company might believe the current stock price is too high or foresee potential challenges.

Technical Analysis

Stock Price: Today’s stock price is $206.38, showing a 7.61% increase over the past month, indicating a positive short-term trend. Compared to a year ago, the stock has increased by 43.74%, suggesting a significant positive long-term trend.

Trend: The trend appears bullish with the current SMA10 at 200.95, higher than the previous SMA10 of 200.33. This suggests a potential upward trend in price movement.

RSI: The Relative Strength Index (RSI) is at 40.4, indicating neutral conditions. This means the stock is neither overbought nor oversold.

Alternative Data Analysis

Job Postings and Employee Sentiment: Google has 4,894 open positions, a 15% increase over the last few months, indicating a growth trajectory. Employee sentiment is neutral, neither overly positive nor negative.

Customer Acquisition: With an estimated 111 billion visitors to its webpage and 190,000 daily mobile app downloads, these numbers indicate steady user engagement and a massive reach. However, there has been no meaningful increase or decrease in these metrics recently.

Customer Engagement: On social media, Google maintains strong followings with 15 million Instagram followers and 32 million Twitter followers, though there has been stability in these numbers without significant changes recently.

AI Score: According to AltIndex’s AI score, Google has a score of 63, which is a buy signal. This score consolidates fundamental, technical, and alternative data analyses into a single prediction metric.

Conclusion and Recommendation

Google showcases strong revenue growth, significant profitability improvements, and positive technical trends, signaling a robust financial and operational health. Despite a high P/E ratio and recent insider selling that indicate caution, alternative data points to steady growth and strong customer engagement.

Overall, based on the data provided, Google appears to be a solid investment opportunity with strong growth potential and continued market dominance. The stock presents a favorable outlook, making it a buy recommendation.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.